This schematic shows the circuit of the Alberta electrical grid in the Medicine Hat (clockwise from lower right), Vauxhall, Brooks and Empress planning regions. A new report from the Alberta Electrical System operator suggests $3 billion in upgrades to accommodate growth in production coming from new wind and solar developments.--Supplied Image
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A second major wind farm proposal near the Hat is delayed as power companies worry that existing lines can’t carry their electricity out of the region.
At the same time, Alberta’s grid operator suggests more than $3 billion in “near term” line upgrades are needed soon in southeast Alberta.
And as a back-drop, the provincial government is studying changes to how those upgrades would be financed, likely making new wind and solar projects pay.
The Buffalo Trail Wind project was approved to be built south of Irvine in early 2023 and would need to be completed by the end of this month.
However, French developer Engie told the Alberta Utilities Commission in a letter this month that hasn’t begun due to uncertainty over export capacity in the region. He requested a two-year delay until mid-2028, when new lines could be in-service.
“ENGIE is not in a position to begin construction … primarily due to the impact of congestion in the region of the transmission system in which the project is situated,” it stated in a letter written by its law firm, Blakes.
It cites the regional lines carrying capacity of 795 megawatts, while an additional 1,000 megawatts have been requested by projects in late development, and another 4,500 megawatts are proposed.
Line proposals in the Alberta Electrical System Operator (AESO) long-term transmission plan published in January state system expansion in the southeast is required to accommodate growth in production rather than use.
Projects include adding a backdoor to power flowing out of the Bow Island – thereby relieving pressure on line between Medicine Hat and Brooks – at an estimated cost of $650 million.
Boosting capacity from Brooks to Calgary could cost $1.8 billion, and adding export capacity to the Saskatchewan grid, near Empress, another $600 million.
Such changes were outlined in 2023, when AESO okayed $50 million in upgrades to a substation northeast of Medicine Hat to stabilize load.
“The limits of the Cassils-Bowmanton-Whitla (line to the project) are such that significant congestion is expected to occur, leading to ‘high curtailment risk’ under current conditions,” states the Engie application.
That same argument was also made by EDF Renewables in late 2023, when it asked to delay constructing the “Bull Trail” wind farm, planned for the east side of Highway 41, across from EDF’s Cypress Energy Centre,
“Buffalo Trail” is approved to be built in an “S” shape between the two and extend northwest toward Dunmore.
Those are just two of a half dozen major projects in the region that are approved, but haven’t started construction.
AESO states that current wind- and solar generating-capacity in the south region is stated to be 6,700 megawatts, but another 1,700 MW would be added in the short term, and the total could be 50 per cent greater in the longer term.
Officials with Alberta Ministry of Utilities and Affordability have said coming changes will assign costs of connecting plants on the developers.
“(The review) includes assigning costs for new transmission on a cost-causation basis where new generators will be required to pay a portion of the costs so Alberta’s ratepayers are no longer burdened with the full cost of building new transmission lines,” said Ashli Barrett, of the ministry.
The province has also promoted “non-wire” solutions, like battery storage and new co-generation projects, to smooth out load distribution without costly physical upgrades to lines.
Currently, customers cover costs of upkeep and system expansion through distribution charges on power bills.
Medicine Hatters are shielded from the province-wide charge – which can add $30 per month to bills – as a grandfathered municipal power franchise area that rarely accesses the grid for imports.
However, the City of Medicine Hat power plant does export surplus power and officials say they have been limited at times putting power on the system.
In times when production overwhelms transportation capacity, all producers are forced to curtail exports, and a congestion report from AESO in late 2024 suggested more than 500,000 megawatt hours of power were curtailed in the course of a year. At average pricing that would translate to tens of millions of dollars in forgone revenue.
